Pension Funds Performance Report: March 2025

March 2025 Pension Fund Growth Insights

This report provides an analysis of investment returns generated by PFA’s in March 2025 and YTD to 31 March 2025. As of 28 February 2025, PFA’s managed more than ₦22.86 trillion on behalf of 10.65 million RSA holders. Is your retirement fund growing optimally? Read on.

Welcome to our March 2025 newsletter, where we provide you with a comprehensive update on the growth of the various RSA pension funds managed by the PFA’s. As is now customary, we delve into the performance of the different funds up to March 2025, the first quarter of the year, highlighting the top performers, average growth rates, and offering insights into the trends.

At the end of the quarter, the NGX All-Share Index had lost 2.00% YTD, the NGX 30 had lost 2.06%, whilst the NGX Pension Broad Index was down 1.85%. All other equity indices also posted negative returns for the quarter. In January, the NBS rebased inflation and when the inflation number for January 2025 was release it printed in at 24.48%, lower than the 34.80% in December. February’s rate also came in lower at 23.18%. The CBN kept interest rates unchanged at 27.50% during the quarter and market yields on fixed income instruments adjusted, taking in both the stances on inflation and MPR. The 1 year treasury bill closed the quarter at 24.11%, the 2029 FGN Bond with 5 years to maturity closed with a yield of 19.26%, whilst the 2034 FGN Bond, the closest to t a10 year bond closed with a yield of 18.51%.

Fund I: March 2025 Fund Growth

• NLPC Pension Fund I led the 18 funds with a growth rate of 1.58%, showcasing strong performance, followed by CrusaderSterling Pensions with a growth rate of 1.42% and Nupemco at 1.26%.
• The average growth is a modest 0.59%, indicating a mixed performance across the board.
• Returns for Tangerine APT Pensions, Norrenberger Pensions and PAL Pensions were negative for the month.

Commentary: The mixed results suggest that while some funds are performing well, others were struggling, possibly due to market fluctuations or specific investment strategies.

Fund I: 2025 YTD Fund Growth to 31-03-2025

• PAL Pensions topped the list with a 7.21% growth for the 3 months to 31 March 2025, indicating a strong start to the year. Behind them was Trustfund Pensions 6.50%, Oak Pensions 6.29% and Nupemco 6.11%.
• Average growth of all funds was a robust 4.96%.
• Despite the overall positive trend, NPF Pensions and tangerine APT Pensions lagged at 2.45% and 2.15% respectively.

 Fund II: March 2025 Fund Growth

• Nupemco led the Fund II performance chart with a 1.21% growth, followed by CrusaderSterling Pensions 1.13% and NLPC Pension 1.09%. The other funds grew more than 1%, whilst the average Fund II growth was of 0.71%, slightly higher than Fund I, showcasing variances in fund management strategies.
• Tangerine APT Pensions had a slight decline of -0.24%, which could be a temporary setback.

Fund II: 2025 YTD Fund Growth to 31-03-2025

• YTD, Trustfund Pensions showed a significant 5.57% growth, indicating strong management and strategic investments. They were closely followed in performance terms by PAL Pensions 5.41% and Stanbic IBTC Pension Managers 5.02%. Average growth YTD was a healthy 4.38%, reflecting a positive year-to-date performance, though NPF Pensions was lagging all others with a Fund II growth of just 2.20%.

Fund III: March 2025 Fund Growth

• Guaranty Trust Pension Managers led March’s fund returns with a 1.25% growth, followed by Nupemco 1.22% and CrusaderSterling Pensions 1.13%. The average growth of 0.94% is again higher than Funds I and II. Lagging the table was Tangerine APT Pensions with a chart propping 0.35%, which is not concerning in the short term being that the fund had an above average performance in January and February. The overall performance is stable, indicating effective risk management.

Fund III: 2025 YTD Fund Growth to 31-03-2025

• YTD, PAL Pensions tops the list of Fund III performers with a 4.62% growth, followed very closely by Guaranty Trust Pension Managers 4.52% and not too far behind in 3^rd, Nupemco growing it’s Fund III by 4.19%. The average growth of 3.85% across all funds continues to reflect the positive trends, though NPF Pensions props up the table with a lower than average performance of 2.25%.

Fund IV: March 2025 Fund Growth

• For Fund IV in March, Nupemco led the chart with a 1.39% growth, showing resilience in the market. It was closely followed by Oak Pensions 1.32% and Fidelity Pension Managers 1.27%. Average growth across all funds was 1.16%, with 8 funds generating above average returns and 8 funds below average returns. NPF Pensions was the laggard fund, generating a distant 2.25%, a bit of a distance behind NLPC Pensions at 3.28%. Overall, the fund's performances were stable, suggesting a cautious but effective investment strategies.

Fund IV: 2025 YTD Fund Growth to 31-03-2025

• YTD, Access ARM Pensions Fund IV showed significant growth at 4.07%, very closely followed by Trustfund Pensions with a fund growth of 4.05%, and PAL Pensions 3.99%. The average growth of 3.73% across all but two Fund IV’s is healthy, reflecting a positive year-to-date performance.

Fund V: March 2025 Fund Growth

• For the Micro Pension Funds, Trustfund Pensions led with a 2.04% growth, demonstrating strong performance, followed by Premium Pensions 1.83% and NLPC Pensions 1.80%. The average growth of 1.50% is modest, indicating a mixed performance across the board.

 Fund V: 2025 YTD Fund Growth to 31-03-2025

• YTD, Trustfund Pensions continues to lead the grouping with a significant 6.23% growth, followed again by NLPC Pensions 5.94% and PAL Pensions 5.85%. The average growth across all but 3 funds of 4.75% is robust, reflecting a continued positive year-to-date performance. However, Norrenberger Pensions showing a growth of 0.96% reversed the negative return YTD the fund had as of the end of February.

Fund VI - Non-Interest (Active): March 2025 Fund Growth

• For non-interest funds, Norrenberger Pensions led the active segment very closely followed by PAL pensions also 1.73% and CrusaderSterling Pensions 1.66%. Average growth for this segment saw an average growth of 1.17%, though there were a few funds that generated below 1% growth and Tangerine APT Pensions was negative at 0.44%

Fund VI - Non-Interest (Active): 2025 YTD Fund Growth to 31-03-2025

• YTD, Nupemco topped the list with a remarkable 8.71% growth, indicating a strong start to the year, followed by CrusaderSterling Pensions 6.07% and NLPC Pensions 5.35%. Average growth across all funds was 4.83%.

Fund VI - Non-Interest (Retiree): March 2025 Fund Growth

• NLPC Pension led non-interest retiree funds with a 1.87% growth, followed on by PAL Pensions 1.58% and Stanbic IBTC Pension Managers 1.50%. Average growth was 1.28%, with 4 funds growing lower than the average 1.28%.

Fund VI - Non-Interest (Retiree): 2025 YTD Fund Growth to 31-03-2025

• YTD, NLPC Pension has posted impressive gains, growing the fund 5.41% YTD, followed by Access ARM Pensions 4.85% and Premium Pension 4.63%. Average growth across all the funds was 4.17%.

Conclusion:

March’s performance analysis shows mixed performances across the various pension funds. While some funds have shown significant growth, others have experienced declines or growth slowed. It's crucial to monitor these trends and make informed decisions based on your financial goals and risk tolerance.

We hope you find this update helpful. If you have any questions or need further clarification, please feel free to reach out.

Stay informed, plan ahead, and make your investments count!